(FOX 9) – Minnesota’s minimum wage will rise to adjust for inflation on January 1, 2021, the state Department of Labor and Industry announced on Monday.
The minimum wage for large employers will increase from $ 10 to $ 10.08 an hour. The minimum wage for small employers and young people under 18 will increase from $ 8.15 to $ 8.21.
State minimum wage rates do not apply to work performed in Minneapolis and St. Paul, which have higher minimum wages.
Minimum wages for employers of different sizes in both cities will reach $ 15 in several years from 2022 to 2027 and will be adjusted for inflation thereafter.
In February 2020, about 8.5% of jobs in Minnesota paid the minimum wage or less, although that was before the COVID-19 pandemic had a significant impact on the state’s economy, according to a press release.
The DLI also released the Minnesota 2020 minimum wage report on Monday. The report found that the actual annual income in 2020 for workers earning Minnesota’s minimum hourly wage and working 40 hours a week was $ 20,800 for workers at large employers and $ 16,952 at small employers.
Minneapolis workers earned full-time annual salaries of $ 26,520 at large employers and $ 23,660 at small employers, while St. Paul workers earn $ 22,360 at large employers and $ 20,800 at small employers, according to the report.